The Spar Group Limited. JSE: SSP

Background of SPAR

The SPAR Group is a leading wholesaler and distributor of goods and services, with a history stemming back to its establishment in South Africa in 1963 as a wholesaler servicing 500 small retailers.

Today, the group supplies and services almost 2 000 independently-owned SPAR stores in South Africa and a number of other African countries. The group broke new ground in 2014 when it decided to buy BWG in Ireland, comprising more than 1 300 SPAR, MACE, XL and Londis stores and various wholesale cash and carry branches. The group also acquired a majority stake in SPAR Switzerland, bring total footprint to more than 4 000 stores.

The group also owns Build It stores in Southern Africa, TOPS @ SPAR liquor stores and Pharmacy @ SPAR stores. Products are distributed from seven distribution centres and put up for sale in the group’s stores.

SPAR Groupshares are listed on the Johannesburg Stock Exchange (JSE) with a market cap of R35 billion.

SPAR Shares Growth Driver

SPAR’s business model is grounded in a voluntary trading agreement with its network of independent retailers, which allows stores to source goods from local traders and target their own LSM targets whilst utilising SPAR’s trading power. This limits the group’s exposure to any one customer group or geographic region.

Southern African operations contribute 77% to the group’s overall turnover, supported by regional distribution centres catering for distinct customer profiles. In 2016, the group expanded its international footprint with the move to buy a majority stake in SPAR Switzerland. Despite a constrained economic environment in South Africa, the group’s financial data for the year was impressive, with turnover increasing by 23.8% to R90.6 billion and operating profit rising by 12% to R2.5 billion. Net asset value per share rose by an impressive 63% to 3 140 cents.

Liquor sales from TOPS have been a star performer for the past few years, with revenue rising by 12% in 2016. Turnover from Build It also rose by 11.5%, and turnover from Ireland grew by 36.8% as the store footprint expanded. The stores in Switzerland made their first contribution for the year, generating R5.8 billion turnover.

A total of R441 million capital was invested in expanding operations, whilst a further R750 million was spent on acquisitions, illustrating a particularly active growth year for the group.

SPAR Group Investor Tip

SPAR Group shares have been a blue-chip retail stock to buy, with the JSE stock chart showing a sharp rise in SPAR Group share price from R125 in 2014 to R186.52 by November 2016. The company is aggressively expanding both in southern Africa and Europe, and now has a balanced asset base which makes SPAR Group shares a more attractive buy than ever before. The future forecast hints at a rising SPAR Group share price.

SPAR Major Shareholders

Government Employees Pension Fund, Oppenheimer Funds Inc

Sector

Consumer Staples

Industry

Food & Staples Retailing

Sub industry

Food & Staples Retailing

How to buy SPAR Group Shares

SPAR : How to buy SPAR Group Shares Online

We have made it simple to buy JSE listed firm shares online. The easiest way to buy SPAR Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in SPAR Holdings and assist you with the setup and management of your stock portfolio account.

Here are the steps you must follow to Buy / SPAR Group shares with utmost confidence:

Start by Filling in the BUY THIS SHARE form.

Insert your name, email, telephone number and monthly remuneration.

Then, Indicate the amount you are looking to invest in SPAR.

Click the “ INVEST NOW” button

Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.

Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

Buy Shares with Confidence

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